In addition to transaction funding and disbursement processing, you can embed financial products that support your merchants in operating and growing their businesses. Through a one-time integration with the Worldpay for Platforms Embedded Finance Engine (EFE), you can:
Integrate a growing suite of tools and services from embedded finance providers within your platform—all with little to no development effort on your end.
Provide your merchants with access to the financial services they need in one place.
Experience a streamlined onboarding and compliance process for your business and your merchants.
Generate revenue from your merchants’ adoption of embedded financial products.
Merchant Working Capital
Merchant Working Capital, powered by Parafin through the EFE platform, grants Merchants access to capital for funding their business. Funding is offered as a flex loan, which Merchants can use for any business purpose.
Overview of Working Capital
The following features of Merchant Working Capital address challenges that small business owners often encounter:
Underwriting: Worldpay for Platforms and Parafin manage the complexities of risk and compliance approval for you and your merchants. Parafin reviews Merchant data during their underwriting and offers generation process to determine whether your platform qualifies for the capital product offering.
Offer generation: Merchants receive pre-approved offers based on various business factors, such as the age of the business, performance history, and processing volume.
Application workflow: Merchants can apply for a loan without leaving your platform. Applying for a loan doesn’t affect a Merchant’s credit score and doesn’t require any personal guarantees. Upon loan approval, the Merchant signs a loan agreement with Parafin before receiving the approved funds in their bank account.
Fee structure: A flex loan consists of a capital fee, which is a fixed amount that Merchants pay over the term of the loan without any additional interest.
Repayment: Merchants return the full amount of their loan and capital fee through repayments. To facilitate cash flow and reduce financial strain, each repayment is based on a fixed percentage of the Merchant’s daily sales. Parafin automatically debits repayments from the bank account provided by the Merchant in their loan application.
Merchant Experience
Merchants view and manage their loans directly through a widget embedded in your portal, whether it’s your own software or the Payrix Pro white-labeled solution. From a single dashboard, Merchants can:
View pre-approved offers. Pre-approved offers are automatically loaded to a Merchant’s dashboard. Merchants can also receive emails notifying them of an offer.
Apply for a loan. The Merchant selects a loan amount and sees a breakdown of the loan offer. The Merchant then submits their personal, business, and bank account details for verification. Information is prefilled based on the data that's already in your platform.
View pending applications. Merchants can continue from where they left off in a loan application or view the status of a submitted application.
Manage active loans. Merchants can view details of their loan, including the loan balance, repayment details, recent activity, and related documents. They can also make a manual payment to pay all or a portion of their outstanding balance.
Next Steps
View the following articles to get started with embedded finance: